9Reduction of royalty—potentially uneconomic wells

9 Reduction of royalty—potentially uneconomic wells

Scope (1) This section applies if the State Minister is satisfied that the rate of recovery of petroleum from a well has become so reduced that, having regard to the rate or rates of royalty applicable under section 6, 7 or 8, further recovery of petroleum from that well would be uneconomic. Reduction of royalty (2) The Joint Authority may, by written instrument, determine that the royalty in relation to any or all of the petroleum recovered from that well on or after a date specified in the determination is to be such lower rate as is specified in the determination. (3) The Joint Authority may, by written instrument, revoke or vary a determination under subsection (2), and the revocation or variation applies to petroleum recovered on or after such date as is specified in the instrument. (4) A determination under subsection (2) has effect despite section 6, 7 or 8.